Impact of Regulatory Changes on the Economic Viability of Photovoltaic Systems in Brazil

Abstract

In Brazil, the accelerated growth of solar photovoltaic energy through Distributed Generation (DG) conducts National Electric Energy Agency (ANEEL) to revise the Electric Energy Compensation System to balance the electricity grid costs DG participants and non-participants. For this, ANEEL proposed five Alternatives with the entry of grid electricity use costs (TUSD and TE) for DG participants. This article aims to analyze TUSD’s Alternatives’ impact on the economic viability of PV systems in Brazil in three scenarios: residential, commercial, and industrial. We verify that the new legislation significantly impacts the residential investor. From Alternative 0 to Alternative 5, the Payback Time can take approximately three times in years for the residential class, from 4.22 to 13.07 years. TUSD Alternatives’ impact for the commercial and industrial class occurs with less intensity since the proportion that TUSD rates have compared to the level of electricity consumption is modest.